Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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In a shared equity loan, who does the borrower share equity with?

  1. Just the bank

  2. An investor, seller, or lender

  3. Only with government agencies

  4. No one, it's a solo investment

The correct answer is: An investor, seller, or lender

A shared equity loan involves a borrower sharing equity with a third party, such as an investor, seller, or lender. Option A is incorrect because the borrower does not only share equity with the bank. Option C is incorrect because the borrower can also share equity with private investors, not just government agencies. Option D is incorrect because the whole purpose of a shared equity loan is for the borrower to share equity with another party, so it is not a solo investment.

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